We all know that when it comes to marketing, loyalty programs, buying clubs and the like are great tools, but only if you use them right. Like any other tool, these things can prove very useful or they can do a lot of unintended damage. While perusing one of my favorite sites, consumerist.com, I ran across a couple of stories that illustrate just how not to manage your company’s loyalty program, an object lesson in the need to keep the corporate chaos to a minimum.
Loyalty in the Reward Zone
It begins with Best Buy. This big-box behemoth offers a rewards program called “Reward Zone Premiere Silver,” a bigger and more rewards-intensive version of its original free Rewards Zone program; and as if to demonstrate that they take the concept of “customer rewards” very seriously, they restrict membership to those who spend at least $2,500 each calendar year. Your reward for supporting Best Buy l... [Read Full Article]